Industrial Leases in Los Angeles: A Look at the Q2 2025 Market
- bkalhor
- Aug 7
- 3 min read
At K2 Investment, we understand that industrial real estate is the backbone of the
global supply chain, and its health is a key indicator of economic activity. The latest
insights from CoStar on the top industrial leases in Los Angeles for the second quarter
of 2025 provide a clear picture of tenant demand, key sectors, and geographical
hotspots.
While the broader national market shows signs of softening, the Los Angeles market
continues to demonstrate robust activity, particularly within specific submarkets and for
certain types of tenants. This activity is driven by the region's crucial role as a major port
and distribution hub.
Key Takeaways from the Top Q2 Leases:
Substantial Lease Sizes: The leases highlighted range from over 56,000 to
nearly 446,000 square feet. This shows that despite some national pullback,
there is still significant demand for large-scale industrial spaces in the Los
Angeles area.
Logistics and E-commerce Dominance: A notable number of these top leases were signed by logistics, transportation, and cross-border e-commerce companies. Tenants like YS Express, YunExpress, and Global Equator are all
expanding their footprints, demonstrating the ongoing importance of the L.A. market for supply chain operations.
Strategic Locations: The deals are concentrated in key industrial submarkets
that offer excellent access to major transportation arteries. Locations like
Commerce, Vernon, and the City of Industry continue to be highly sought after
due to their proximity to ports, freeways, and a dense consumer base.
Mix of New and Renewed Leases: We're seeing a healthy combination of new
tenants entering the market and established companies renewing their
commitments. Paramount Logistics and Walker Zanger both signed significant
renewals, signaling confidence in their current locations and the long-term value
of industrial assets in the region.
Diverse Tenant Types: Beyond logistics, the list includes tenants from a variety
of industries, such as:
o Manufacturing: Hyperdyne, a maker of abrasive products, and Premier Packaging, a custom contract packaging company, are expanding their operations.
o Beverage Production: DrinkPAK, a canned beverage maker, signed a new seven-year lease, highlighting demand for specialized manufacturing and distribution facilities.
o Stone and Tile: Walker Zanger renewed its lease for a decade, showcasing the stability of certain long-standing tenants.
Notable Leases in Detail:
YS Express Sublease, Commerce: The largest lease of the quarter was a
445,767-square-foot sublease signed by YS Express. Its location in the C3
Business Park provides a strategic advantage with easy access to major
highways, a critical factor for logistics firms.
YunExpress New Lease, Vernon: This 232,229-square-foot new lease at the
Prologis Vernon Business Center further solidifies the role of L.A. as a vital hub
for international e-commerce logistics.
Walker Zanger Renewal, North Hills: Walker Zanger's commitment to another
10 years in the North Hills Industrial Park speaks volumes. It shows that for
tenants who have found the right location and facility, locking in long-term
stability is a priority.
These transactions underscore the fact that even with national uncertainties, the Los
Angeles industrial market remains a powerhouse. For investors, this detailed view of
leasing activity highlights where demand is strongest and what types of properties are
most attractive.
At K2 Investments, we use this kind of granular data to identify opportunities for our
clients, whether it's sourcing a well-located property for acquisition or helping a tenant
find the perfect space to support their business growth. The market is complex, but with
the right insights, we can help you make strategic decisions that lead to success.
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